Money
Managing your money
ID theft - how to protect yourself
The latest blunder by HM Revenue & Customs has caused panic among bank account holders whose confidential details on computer discs were lost, writes Holly Thomas
While parents who receive child benefits were the group affected, this is a reminder to us all how important it is to keep our details - addresses, bank account details and National Insurance numbers - closely under wraps.
Experts in identity theft have warned that sophisticated fraudsters might never touch the existing accounts on the discs, but they could use the data to obtain credit cards and loans.
Identity fraud - in which a criminal uses someone's personal details to access their bank accounts or borrow money - is rising and costs the UK about £1.7billion a year.
Fraudulently opened credit deals are one of the more serious forms of identity theft because of the large sums of money involved.
This type of fraud can take a long time to resolve and cause high levels of stress for the victim.
There are a number of measures to avoid being ripped off including checking your credit report often to check that no-one has applied for a loan in your name. You can do this with Experian.co.uk, Equifax.co.uk or Callcredit.co.uk
You can also sign up to insurance policies that will check these automatically, and will compensate for any loss and pay legal expenses.
You can also register your details with CIFAS, the UK's fraud prevention service for a one-off fee of £11.75. Once you are registered, lenders must first check with you if anyone applies for credit using your name or address.
Consumers are protected by the Banking Code, which means you will not suffer any financial loss.
Thieves will go to any lengths to get their hands on free cash, including going through your bins looking for discarded utility bills or bank statements, all of which contain important personal information, and can also be used as proof of identity.
Shredding papers containing personal details before you dispose of them means the details can't be read. Opt for a criss-cross shredder for the best results.
Many of us have received utility bills, insurance certificates or credit card statements belonging to other people.
These can be used as proof of identity in arranging credit agreements, getting store cards and even opening fake bank accounts.
Before moving house you should apply for the Royal Mail's redirected mail service either at a Post Office or at www. royalmail.com. It costs from £7.10 for one month to £35.95 for 12 months.
Never reply to unsolicited emails and keep your internet protection software up to date.
* Holly Thomas is the deputy personal finance editor of the Daily Express and Sunday Express. Her opinions are her own and for general information only. Always seek independent financial advice.
